Ulead Systems Endorses U3 Smart Drive Computing Platform.

SAN JOSE, Calif. -- Ulead Systems, Inc., a 15-year industry leader in digital media software, today announced its support of the U3(TM) smart drive computing platform, which lets consumers launch applications from U3 powered USB smart drives and run them safely on any PC running Windows 2000 or Windows XP. Ulead Systems will demonstrate three prototype applications compatible with U3 powered USB smart drives at the first annual U3 Global Developer Summit, which begins today at the San Jose Marriott. Ulead Pocket Slideshow allows users to create photo slideshows while Ulead Pocket DV Show enables them to turn their video footage into DVD productions. The third application -- called Ulead Pocket Backup -- lets users perform easy backup of their key files, including files on the U3 powered USB smart drive.

"U3 has developed a unique idea with incredible potential," said Colin Stiles, vice president of sales and marketing for Ulead Systems, Inc. "Ulead's customers already have the ability to capture movies, images and sounds everywhere they go. It makes sense that they'd want to carry editing and creative tools, too. The idea of staying productive even while away from one's own PC is very interesting to us. We think U3 has a great future."

"Ulead is a veteran in the video, imaging and DVD authoring space and remains a dynamic innovator in that market," said Kate Purmal, chief executive officer of U3. "Pairing the U3 smart drive computing platform with 'U3 smart' software from Ulead will put creativity in the hands of smart drive users. Working with companies like Ulead expands the breadth of applications we can offer the U3 smart drive users."

U3 powered USB smart drives transform the USB flash drive into a private, portable and protected workspace that simply plugs into any PC running Windows 2000 or Windows XP. Users not only access data, but launch personal applications from their smart drive through a user-friendly interface called the U3 Launchpad, making computing more mobile and secure. The U3 smart drive computing platform is designed to leave no trace of the user's data on the host computer when the U3 powered USB smart drive is removed, and to give the user full confidence that no personal information has been left behind.

Ulead Pocket Slideshow turns digital photos into fun-to-watch DVD slideshows. The software enables U3 powered USB smart drive owners to capture or import digital photos from their camera, memory card or hard drive and turn them into theme-based DVD slideshows with transitions, background music and text. For video, Ulead Pocket DV Show enables U3 powered USB smart drive users to easily and quickly turn videos into DVD productions. It captures and burns digital video from the camcorder to a DVD with a DVD menu including chapter points. To backup files, Ulead Pocket Backup is automated backup software with an easy-to-navigate, kiosk-like interface. U3 powered USB smart drive owners can back up data to the U3 powered USB smart drive or burn data to DVD or CD.

About Ulead Systems

Ulead Systems, Inc. is a leading developer of innovative video, imaging and DVD authoring software for desktop, server, mobile and Internet platforms. As more people use digital technologies at home, school and the workplace, Ulead software empowers users of all levels with the tools to easily and affordably personalize, manage and share digital content. For more information on the company, please visit Ulead's Web site at www.ulead.com or call 800-85-ULEAD (800-858-5323).

About U3

U3 LLC of Redwood City, Calif., has developed an innovative platform to make USB smart drives that host a "personal workspace" -- not only data and files, but software programs, personal user preferences and the means for managing them. U3 powered USB smart drives transform a PC into a truly personalized computer, quickly, easily and securely, and exit transparently when done. U3, backed by USB flash drive market leaders M-Systems (NASDAQ: FLSH) and SanDisk(R) Corporation (NASDAQ: SNDK), licenses its platform to USB drive manufacturers. For more information see www.U3.com.

U3 is a trademark of U3, LLC. All other brand and product names are or may be trademarks of, and are used to identify products or services of, their respective owners.